Can I/Should I refinance?

[Anonymous]

Hi guys, i just moved into a new construction home last year and paid 430k... put about 6-7 percent down and my remaining principal balance is 400k...

I am currently on a 30 year fixed @ 4.25 percent and pay PMI. Would it be worth it for me to refinance? I will probably remain in the house for at least 5 years... Do i even have that option with my high LTV?

[Anonymous]

I don't know how low of a rate you'll get with the PMI and all, but I did a no-cost refi through Eagle Bank to shave off half a point. Paid nothing, and payments went down by about $150/month, which for me is worth it. And if you do it soon, you only reset your 30-year loan by a little bit.

What are the current rates? If you can save at least 1/2 a point, might be worth it.

[Anonymous]

Lot of variables here. What were your closing costs? Five years may not recover closing costs. I would say if you can save $150 a month to $200 a month it would be worth it. Has the value of home gone up since you bought it? All factors.

[Anonymous]

I would wait until you are closer to 80% LTV and then get rid of pmi. You probably won't get much lower than 4.25% at this time.